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Maybe cos they are multiplicative
its not 100%(warfare) +100%(highground) = +200%
its *2(warfare)*2(highground) = x4


That's not the problem. You can roughly have 21 skill points per level, +1 from talent and +2 at level 1. So you got 24 skill points, This way you can't master Archer + Ranged Weapon + Warfare.

So my question, is why would someone pick a +5% damage IF on an upper ground, instead of picking a 5% physical damage that works everytime.
If you pick 10 in Archer, 10 in Warfare and 4 in Ranged. You will deal the same damage as 10 Archer 10 Ranged 4 Warfare, but you don't have any condition for it. (or i missed something :p)

Ranged can also be used from any ranged attack, like magical spells and stuff. But i guess that the logic goal is for a bow user.